APL cuts capacity, reorganises network

Singapore - Slackening demand has forced NOL's container shipping business APL to cut capacity and reorganise its global service network.

"The traditional seasonal softening of demand in the main container trades has been compounded by the global financial crisis and economic slowdown," said APL president Eng Aik Meng.

To counter these challenges, the firm has reduced demand and reconfigured its services.

APL said it will reduce capacity in the Asia-Europe trade by close to 25%. It will suspend its CEX (China Europe Express) service from 2 November 2008. It will in turn revise the port coverage and voyage length of its SCX (South China Express) service. The new SCX route will make westbound calls at Xiamen, Colombo and Southhampton and new eastbound calls at Salalah and Hong Kong. It will also cease calling at Thamesport and Chiwan.

APL also plans to reduce capacity in its Transpacific trade by around 20%. It will suspend all its PS3 (Pacific South Express 3) services and bump up its PCX (Pacific China Express) service. The PCX service will now rotate through the Ningbo, Yangshan, Kwanyang, Pusan, Long Beach and Oakland ports.

The firm will also make additional calls at Yantian and Chiwan in its South Asia Express (SAX) route, after suspending its Pacific South West (PSW) service.

The company will cease the Singapore Subcontinent Express (SSX) route, to be covered by a combination of its China Middle East Express (CMX) and China Singapore Service (CSS) routes.